So you’ve figured out that your company should incorporate in Delaware then that leaves you with one last decision: how to get it done. You have three options: 1) do it completely on your own; 2) use a “do it yourself” (DIY) service; and 3) hire an attorney to take care of it.
DIY: Certainly the most cost-effective route as you’ll only have to pay filing fees ($89), a registered agent ($50-100 per year), and lost time. Realistically, the process of incorporating is not overly complicated and can probably be done on your own. The problem a lot of people will run into is that they will rush to incorporate, and / or use boiler-plate forms they find online as their incorporation papers. At first, this may not pose an issue. Years later though stuff can come up as a result of your hack job incorporation. For example, when your business starts scaling and you realize the corporate structure you chose during filing is not the best for your company, you will need to take certain steps to do so. Or you only issue 5,000 shares and are left without any for an employee option pool.
DIY services: In addition to the filing fees listed above, you could pay a service provider to file the documents for you. After answering a few questions some companies charge $200-$600 to prepare and file the documents for you. Be aware that these companies, like typically up sell for unnecessary services / add-ons. Also, keep in mind the incorporation packages offered by DIY services often don’t include the important post-formation docs you need.
Hire a lawyer: Hiring an attorney during the business formation stage is the easiest way to incorporate. Remember, Delaware isn’t always the best option for incorporating, whether as a C-Corp or some other type of business entity. Should your business start-out as an S-Corp then convert to a C-Corp down the road? Would setting up your C-Corp in your home state be more advantageous than incorporating in Delaware? These are common questions that need to be explored prior to incorporating. Also, as you grow your company, you might run into issues concerning employee agreements, protecting intellectual property, raising capital and more – areas of legal that a lawyer can help you organize from day one. Lastly, the nagging question of “did I mess this up” is eliminated when you hire an attorney. By ensuring that it’s done correctly the first time, retaining counsel can actually end up being cheaper than doing it (incorrectly) yourself.
If you’re interested in having an attorney assist you with incorporating in Delaware then visit. We’re a legal platform that connects entrepreneurs with quality attorneys according to your industry & budget. Message me w/ any questions!